Bitcoin

The UK government is considering a blanket ban on all investment cold calls, including those related to cryptocurrency investment.This week, the UK treasury released a<a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1175770/Coldcalling_consultation-_final_clean.pdf" rel="noopener noreferrer nofollow"> consultation paper</a> to understand the grassroots level impact of such a ban, and called for evidence to gauge the full impact on businesses and costs associated with introducing and implementing the ban.This is part of the government’s anti-fraud strategy, and fraud costs the country an estimated US$8.7 billion annually. Fraud also constitutes more than 40 per cent of all crime in the UK, with the value of <a href="https://financefeeds.com/uk-to-ban-cold-calls-for-selling-crypto-financial-products/" rel="noopener noreferrer nofollow">cryptocurrency fraud increasing by 32 per cent to US$283 million</a> in the year ending September 2022.Economic Secretary to the Treasury Andrew Griffith criticised the rising number of cold calls for financial services and products that often target vulnerable members of society, and <a href="https://cointelegraph.com/news/uk-ban-crypto-investment-cold-calls" rel="noopener noreferrer nofollow">said that the government “will not tolerate this behaviour”</a>.The proposed ban would place clear restrictions on businesses that wish to market financial products and services, and let consumers know that cold callers advertising such products were not legitimate.As part of the public consultation, the government also put forth 19 questions to stakeholders to ensure that businesses that often rely on cold calling prospects are minimally affected.Previously, the UK government had also introduced new advertising rules for firms marketing crypto assets to consumers. Crypto companies are required to observe a 24-hour “cooling-off” period for first-time investors to consider their decision before investing, and are prohibited from offering ‘refer a friend’ bonuses. Additionally, they must include clear risk warnings in their promotions, and verify that investors have the necessary knowledge and experience to invest.

UK Considers Ban on Crypto Investment Cold Calls

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